HIS113-11pt2 "Big Business" in Early 20th Century- Retailing, Iron & Steel, Automotive

HIS113-11pt2 "Big Business" in Early 20th Century- Retailing, Iron & Steel, Automotive

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Unformatted text preview: “Big” Business in Early th 20 C Retailing, Iron & Steel, Automotive Lecture Eleven History 113 Growth of Big Business Growth of Big Business Factors in growth of big business: New Technologies Infra­structure Development Growth of Canada from sea to sea New forms of Corporate Organization Allow companies to compete on larger scale and in larger markets Growth of Big Business Growth of Big Business New Challenges = New Business Practices Pattern in Canada Large Integrated Firms In industries like financial services, utilities, iron & steel, wood (LaSalle Gas –Processing plant ­ Part of Montreal Light, Heat, & Power 1930) Linked to foreign corps Retailing Retailing “revolution in retailing”: Significant change in distribution and sale of goods Large retailer commands large markets, acts as wholesaler, and manufacturers High volume, low prices, cash payments Why? Retailing Retailing Timothy Eaton (picture) Biography Opens store in TO 1869 Cash only/ Fixed prices Sales directed to working and upper classes 1870s – Begins buying directly from manufacturers 1890s ­ Manufacturing Retailing Retailing 1880s Moves to 190­196 Yonge St Mail Order Service 1884 – Expand through Country Sales and Guaranteed Refunds Attractions – Santa Claus Parade 1905 “Departments” within Stores Management based on Merit 1920s Branch stores Iron and Steel Iron and Steel Important industry for industrialization and manufacturing Must be operated as a large industry Obstacles to Iron and Steel development Maritimes: Beginning to industrialize late 1800s Look to Iron and Steel Coal fields and Iron Ore deposits Iron and Steel Iron and Steel Nova Scotia: NS Steel Co./ New Glasgow Iron, Coal and Railway Co. 1890s Secure ore supply from Bell Island and purchase coal properties on Cape Breton 1895 Merge into NS Steel Co. “fully integrated complex” (Furnace & Coke Ovens – NS Steel) Dominion Iron and Steel 1899 Iron and Steel Iron and Steel Ontario: Secondary iron, steel works late 1800s Primary Iron and Steel industry – Failed attempts 1899 Hamilton Steel & Iron Co. Government Support Consolidation after 1920: STELCO, BESCO, Algoma (“Big Three”) Limitations to industry development Automotive Automotive Reveals two main themes: Foreign Ownership and Nature of “Big” Business Development of the Automobile American become dominant – innovations like the assembly line and mass marketing Ford Assembly Line Automotive Automotive “Canadian” Auto Industry Dominated and Owned by American firms by 1930s – Why?: 1) Resource Limitations Financing, market, infrastructure 2) Technology and Skill Lack of engineering and design skill 3) Proximity Automotive Automotive 4) Tariff and Trade Policy National Policy and British Preferential Trade Policies Encourages foreign investment and establishment of branch plants “Canadian content” provision on auto parts 5) Structure of American Industry Multi­divisional structure Automotive Automotive Ford Canada: Gordon McGregor 1904 Deal with Henry Ford to manufacture Model T for Canadian and Imperial market “Independence” of Ford Canada declines by 1930s Model T 1910 and Catalogue 1908­09 Automotive Automotive General Motors of Canada: R.S. McLaughlin (picture) Makes a deal with Durant (Buick) to build and sell Buicks in Canada 1920s – Becomes Canadian subsidiary of General Motors Success? ...
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This note was uploaded on 12/19/2010 for the course HISTORY 113 taught by Professor Lin during the Fall '09 term at Waterloo.

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